Future unclear for Border's Godfreys store as vacuum franchise goes under

An announcement on Godfreys Group and its subsidiaries in Australia and New Zealand was made on Tuesday, January 30, after 93 years in business.

The Albury store, situated in the homemaker centre on Borella Road, was closed for a period of time as the news came to light.

It previously operated from City Walk Arcade before the homemaker complex was built in 2006.

A note on the front door read: "Sorry for the inconvenience, due to unforeseen circumstances we are closed until 3.00. Thank you for your understanding."

The shop remained closed beyond 3pm.

Established in 1931, Godfreys is one of the world's largest vacuum retailers and one of Australia and New Zealand's leading commercial floor cleaning product suppliers.

The business has 141 stores and employs more than 600 staff across Australia and New Zealand, with an additional 28 stores run by franchisees.

Craig Crosbie, Robert Ditrich and Daniel Walley, of PricewaterhouseCoopers (PwC) Australia, have been appointed as voluntary administrators of the Australian entities.

It is anticipated that 54 stores will be closed within the next 14 days, affecting the employment of approximately 193 staff, 171 of which are based in Australia.

"Like many retailers, Godfreys has faced a challenging economic and operating environment," Mr Crosbie said.

"Lower customer demand amid cost of living pressures, higher operating costs, and increased competition have all taken a toll on profitability, with some stores more impacted than others.

"Our aim is to move quickly to restructure Godfreys to preserve as much of the business and as many jobs as possible. We intend to trade the restructured store network and sell the business and assets as a going concern, with strong interest expected from prospective buyers.

"We will continue to work closely with Godfreys' director, management, and creditors, including staff whose employment is unfortunately impacted by store closures."

Godfreys' director Grant Hancock said: "While the decision to appoint Administrators was difficult, it was made with the best interests of Godfreys' employees, customers and broader stakeholders in mind."

The first meeting of creditors will be held on Friday, February 9.